Alexandria, VA Living Wage

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Alexandria, VA, US

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Type: Ordinance

Status: Adopted

Source File: http://alexandriava.gov/purchasing/livingwageord.html

Text:

Sec. 3-3-31.1 Service Contract Wages.

(a) Required wage rate.

(1) Except as otherwise provided in this section, each public contract for the provision of services, awarded after a process of competitive sealed bidding, shall require that the contractor pay each employee assigned to perform services under such public contract, while performing such services on property owned or controlled by the city, an hourly rate equal to:

(i) the average poverty threshold for a family of four, as determined pursuant to the poverty guidelines updated annually in the Federal Register by the U.S. Department of Health and Human Services under authority of 42 U.S.C. § 9902(2), divided by 2,080, plus

(ii) the average cost per hour incurred by an employer, on behalf of each employee, for the provision of health insurance, as determined by the U.S. Bureau of Labor Statistics (U.S. Bureau of Labor Statistics, Table 8, Employer costs per hour worked for employee compensation and costs as a percent of total compensation: Private industry workers, by establishment employment size, 500 or more workers).

(2) For purposes of subparagraph (a)(1) above, the initial required wage rate shall be computed based upon the average poverty threshold for a family of four, as determined pursuant to the poverty guidelines updated annually in the Federal Register by the U.S. Department of Health and Human Services under authority of 42 U.S.C. § 9902(2), for 2000, and the costs for health insurance, as determined by the U.S. Bureau of Labor Statistics (U.S. Bureau of Labor Statistics, Table 8, Employer costs per hour worked for employee compensation and costs as a percent of total compensation: Private industry workers, by establishment employment size, 500 or more workers), in March of 1999.

(3) If either the U.S. Department of Health and Human Services or the U.S. Bureau of Labor Statistics discontinues the determinations used to establish the required wage rate, the city manager, in his discretion, shall adopt a substitute procedure to establish the required wage rate, which reasonably reflects the average poverty threshold for a family of four or the average cost per hour incurred by an employer, on behalf of each employee, for the provision of health insurance, as applicable.

(4) The contractor under each such public contract shall include the provisions of this subsection (a) in every subcontract so that such provisions, and the other provisions of this section 3-3-31.1, will be binding upon each subcontractor. When a contractor undertakes a public contract subject to this section 3-3-31.1, the contractor agrees to assume the obligation that this section’s wage requirements will be observed in fulfilling the requirements of the public contract. This obligation may not be relieved by shifting all or a part of the work under the public contract to another, and the contractor shall be jointly and severally liable with any subcontractor for any underpayment of wages on the part of any such subcontractor. The appropriate enforcement sanctions under this section may be invoked against both the contractor and any such subcontractor in the event of such subcontractor’s failure to comply with any of the provisions of this section 3-3-31.1.

(5) The required wage rate set forth in subparagraph (a)(1) above shall be paid without contemporaneous or subsequent deduction or rebate of any nature, except such payroll deductions as are required or permitted by law, by a collective bargaining agreement, or by specific written authorization from an employee.

(b) Adjustments. The wages required to be paid under subsection (a) above shall be adjusted as of July 1 of each year to reflect the most current determinations made by the U.S. Department of Health and Human Services and the U.S. Bureau of Labor Statistics and shall be applicable to any public contract awarded thereafter until the date of the next adjustment; provided, however, the wage rates in effect at the time a public contract is awarded to a contractor by the city shall remain in effect under such public contract during its original term. At the time of the exercise by the city of any renewal option under a public contract, the required wage rate shall be adjusted as provided above, and as adjusted, shall remain in effect during the renewal term.

(c) Limits on applicability. The provisions of this section shall not apply to public contracts for professional services, contracts for construction, construction management contracts, design-build contracts or contracts for services procured under sections 3-3-71, 3-3-72, 3-3-73 and 3-3-74, as amended. Nor shall the provisions of this section require payment of the required wage rate to persons employed by a contractor and incarcerated at the city jail.

(d) Publication and notice.

(1) As soon as possible after the annual determination of the required wage rate, as adjusted pursuant to subsection (b) above, the purchasing agent shall publish such rate in English and Spanish on the purchasing division’s world wide web site.

(2) The then current required wage rate shall be posted by each contractor in English and Spanish, on such form as shall be provided by the purchasing agent, in a prominent place at its offices and each location where its employees perform services under a public contract.

(3) Within five days of an employee’s request, a contractor shall provide to such employee a written statement in English and Spanish, on such form as shall be provided by the purchasing agent, of the then current required wage rate.

(4) Notice of the required wage rate shall be stated in the procurement solicitation, as required by subsections 3-3-44(b) and 3-3-66(b) of this code.

(e) Records and reports. Each contractor and its subcontractors subject to the provisions of this section 3-3-31.1 shall:

(1) for a period of three (3) years after the expiration or earlier termination of the applicable public contract, keep and preserve records which show wages and benefits provided by such contractor and its subcontractors to each employee assigned to perform services under such public contract. The purchasing agent, or his designee, shall have the power to examine such records at reasonable times and without unreasonable interference with the business of such contractor or its subcontractors, for the purpose of administering and enforcing the provisions of this section, and to make copies of all or any parts thereof; and

(2) on a quarterly and annual basis during the term of the applicable public contract, submit to the purchasing agent a report, in a form acceptable to the purchasing agent, which shows hourly wage rates, wages and benefits provided by such contractor and its subcontractors to each employee assigned to perform services under such public contract, and such other information as may be required by the purchasing agent.

(f) Additional contract requirements.

(1) Any contractor subject to this section shall, as a term of the public contract, further comply with all applicable federal, state and city laws, rules and regulations including, but not limited to, the U.S. Fair Labor Standards Act of 1938, as amended, the U.S. Occupational Safety and Health Act of 1970, as amended, the U.S. Employee Retirement Income Security Act, as amended, and Chapter 3 of Title 40.1 of the Code of Virginia, 1950, as amended. The violation of any such laws, rules or regulations by a contractor, as determined by the purchasing agent, shall be grounds for termination of such public contract, and debarment of such contractor, in accordance with the procedures set forth in article F, chapter 3, title 3.

(2) As an additional term of the public contract, no contractor shall discharge, reduce the compensation of, or otherwise retaliate against any employee who files a complaint with the purchasing agent, or takes any other action to enforce the requirements of this section or a public contract subject to this section.

(g) Enforcement.

(1) Within six months of a contractor’s or subcontractor’s failure to comply with the wage requirements of a public contract, an aggrieved employee may file a complaint with the purchasing agent, requesting that the purchasing agent enforce the wage requirements of such public contract. In the event that the purchasing agent determines that the employee has not received the wages required under this section 3-3-31.1, the purchasing agent shall direct the payment forthwith of such wages, plus interest at the judgment rate from the date originally due, and less any deductions required or permitted by law. Failure of a contractor or subcontractor to comply with the directive of the purchasing agent shall be grounds for termination of such public contract and debarment of such contractor or subcontractor, in accordance with the procedures set forth in article F, chapter 3, title 3.

(2) Any contractor or subcontractor which fails to pay an employee the wage required by this section shall be liable to the employee affected in the amount of the unpaid wage, plus interest at the judgment rate from the date originally due, and less any deductions required or permitted by law.

(3) Any employee assigned to perform services under a public contract subject to the requirements of this section 3-3-31.1 shall be deemed a third party beneficiary of this section and the provisions mandated by this section in any public contract.

(h) Administrative Procedures. Subject to the approval of the city manager, the purchasing agent may promulgate such additional procedures, not inconsistent with the provisions of this section, and consistent with the procedures for the procurement of services, as he deems necessary and appropriate to effect and enforce the provisions of this section.

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